Company A uses straight line depreciation to depreciate its capital assets. In Year 5 Company A purchased equipment and estimated that it would have a useful life of 8.5 years. After only 3 years of using the equipment, in Year 8, management decided that the equipment would be useful for only 3 more years. What is the proper terminology for management's decision in Year 8? Multiple Choice

Company A uses straight line depreciation to depreciate its capital assets. In Year 5 Company A purchased equipment and estimated that it would have a useful life of 8.5 years. After only 3 years of using the equipment, in Year 8, management decided that the equipment would be useful for only 3 more years. What is the proper terminology for management's decision in Year 8? Multiple Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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